Computers loaned to employees

By Tolley in association with Philip Rutherford
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The following Employment Tax guidance note by Tolley in association with Philip Rutherford provides comprehensive and up to date tax information covering:

  • Computers loaned to employees
  • Introduction
  • Business only use ― exemption from tax
  • Private use
  • Reporting requirements
  • Salary sacrifice

Introduction

Many employees will be provided with a computer in order to perform their duties as an employee. In the vast majority of circumstances, this should not give rise to a taxable benefit.

Business only use ― exemption from tax

Where an employer provides an employee with a computer or laptop and it is solely for business purposes then, as with other business equipment provided, there are no tax or reporting consequences under ITEPA 2003, s 316 if:

  • there is a business need for the employee to be provided with the equipment and it is key to the performance of his duties
  • the employer ensures there is not significant private use
  • the benefit is not a reward to the employee

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